Sur vey Finds Improved Eastern Shore Business Outlook

SALISBURY – Eastern Shore business owners and managers’ outlook on the economy are more optimistic than they were six months ago

These trends are among the findings of the latest Eastern Shore Business Sentiment Survey conducted through a partnership with Salisbury University’s Business Economic and Community Outreach Network (BEACON), SU’s Eastern Shore Regional GIS Cooperative (ESRGC), and many of the region’s economic and workforce development professionals

The June 2023 results represent the fifth report released by BEACON The first survey in the series was conducted in June 2021, with a follow-up in December 2021, and the most recent report in December 2022

The survey included more than 50 questions, asking business leaders to weigh in on a range of topics, from general business concerns to conditions in their own industries Respondents evaluated business conditions locally, regionally, in the state and nationwide for the coming year They also shared views related to their specific industries and on issues from labor supply to regulations

Results include:

The 12-month outlook for business conditions in participants’ respective counties is significantly better than in June 2022 When asked to predict the business conditions in their counties and the Eastern Shore, 25% responded that they believe economic conditions will worsen, compared to 44% in June 2022

Those responding “Much Better/Better” increased by 11 points over 12 months

On a state and national level, almost 44% of participants believe economic conditions will be worse, compared to 63% in June 2022

Expectations for business conditions locally have improved significantly from December 2022 to June 2023 “Much Worse/Worse” responses fell from 38% in December to 25% in June “Unchanged” responses increased to 41% in June 2023 after being 37% in December 2022, and “Much Better/Better” responses increased significantly to 55% from 25% in December 2022

Reflecting on their individual industry sectors, 44% of respondents believe business conditions “Deteriorated A Lot/-

Deteriorated Slightly” over the past 12 months Respondents are optimistic about the short-term future, with 34% believing business conditions in their sector will “Improve Slightly/Improve A Lot” over the next three months Respondents are optimistic about the longterm future, with 37% believing business conditions in their sector will “Improve Slightly/Improve A Lot” over the next 12 months

Respondents assessed inflation as the most significant barrier to expanding their sector, followed by labor force issues then finances and funding The highest barrier to starting a new business in their specific sectors was labor force issues, followed by inflation and finances and funding

When asked which cost increase in the previous six months had the greatest impact on the respondents’ businesses, they noted that the increase in fuel and transportation had the highest impact Close behind, the cost of raw materials and utilities were tied for the second largest impact on local firms

Respondents agreed payroll and benefit costs in the next 12 months would be worse or much worse in their county, region, state, and nation However, “Worse/Much Worse” responses have decreased in the county, region, state and nation when compared to the December 2022 survey

Businesses generally are confident about their operation on a longer horizon Over 79% believe their firm will be operating locally in the next five years, with just 6% predicting their business will not be operating locally five years from now

Even after the events of the COVID19 pandemic, a majority of respondents’ firms do not have remote workers (75%) Of the firms with remote workers, the majority of the workers are in the county in which the business is located

Almost 78% believe household income for the average American has fallen behind the cost of living, while only 4% believe household incomes have surpassed the cost of living

Respondents were increasingly optimistic in their expectations of the standard of living in the next five years Across all areas, 39% believe it will re-